Chaus face company claim for $37.38m

Shanghai businessman Chau Ching-ngai and his wife Mo Yuk-ping are being sued by Shanghai Merchants Holdings, which is already in receivership, for $37.38 million worth of funds allegedly deposited in their privately held bank accounts between February and May.

According to a High Court writ at the weekend, receivers Alan Tang Chung-wah and Alison Wong Lee Fung-ying of Grant Thornton said the funds in question had been deposited to the Liu Chong Hing Bank accounts of Win Victory Holdings, a private company held by the Chaus, on four occasions between February and May.

It is uncertain whether these funds are related to an earlier disclosure by Shanghai Merchants that the listed company was stripped of $69.9 million in four questionable money transfers between February and May while Mo was at the helm.

Receivers are seeking to recoup the funds from two British Virgin Islands-registered companies controlled by unknown parties.

However, it is understood that Shanghai Merchants will soon release a statement explaining the transfer of the money to Win Victory's bank accounts.

Shanghai Merchants, formerly a fabric trading company, was originally part of the Hong Kong corporate empire of Chau until his detention by the mainland authorities for alleged loan fraud.